Shareholder Wealth Experience of Buyers in Corporate Divestitures PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Shareholder Wealth Experience of Buyers in Corporate Divestitures PDF full book. Access full book title Shareholder Wealth Experience of Buyers in Corporate Divestitures by George Alexandrou. Download full books in PDF and EPUB format.
Author: George Alexandrou
Publisher:
ISBN:
Category :
Languages : en
Pages : 34
Get Book Here
Book Description
Whether corporate acquisitions create or destroy value for shareholders is still an unresolved issue. One type of corporate acquisition is made when another firm carries out a divestiture. Evidence on the wealth effects of such partial acquisitions is limited to a few US studies. This study examines the wealth experience of buyers in 877 UK corporate divestitures during 1987-93 and seeks to identify the factors determining the wealth gains. We focus on value created by the acquirer through its business strategy and by exploiting its growth opportunities and on value distributed from the seller to the buyer due to the relative bargaining power of the seller and the buyer. We find that buyers experience significant buy and hold abnormal returns of 0.48% over three days following the divestiture announcement. Thus in contrast to many full takeovers, partial acquisitions create value. We also report that buyers enjoy larger gains when they buy from financially healthy sellers and during recessions. Economic environment rather than firm-specific growth opportunities lead to higher returns. Materially larger purchases create more value. UK buyers buying UK divisions of the seller have an information advantage over UK purchasers of foreign divisions and experience larger wealth increases. The study highlights the importance of environmental, firm-specific and transactional characteristics in determining the value gains from partial acquisitions.
Author: George Alexandrou
Publisher:
ISBN:
Category :
Languages : en
Pages : 34
Get Book Here
Book Description
Whether corporate acquisitions create or destroy value for shareholders is still an unresolved issue. One type of corporate acquisition is made when another firm carries out a divestiture. Evidence on the wealth effects of such partial acquisitions is limited to a few US studies. This study examines the wealth experience of buyers in 877 UK corporate divestitures during 1987-93 and seeks to identify the factors determining the wealth gains. We focus on value created by the acquirer through its business strategy and by exploiting its growth opportunities and on value distributed from the seller to the buyer due to the relative bargaining power of the seller and the buyer. We find that buyers experience significant buy and hold abnormal returns of 0.48% over three days following the divestiture announcement. Thus in contrast to many full takeovers, partial acquisitions create value. We also report that buyers enjoy larger gains when they buy from financially healthy sellers and during recessions. Economic environment rather than firm-specific growth opportunities lead to higher returns. Materially larger purchases create more value. UK buyers buying UK divisions of the seller have an information advantage over UK purchasers of foreign divisions and experience larger wealth increases. The study highlights the importance of environmental, firm-specific and transactional characteristics in determining the value gains from partial acquisitions.
Author: H. Kent Baker
Publisher: John Wiley & Sons
ISBN: 1118030354
Category : Business & Economics
Languages : en
Pages : 612
Get Book Here
Book Description
The most up-to-date guide on making the right capital restructuring moves The Art of Capital Restructuring provides a fresh look at the current state of mergers, acquisitions, and corporate restructuring around the world. The dynamic nature of M&As requires an evolving understanding of the field, and this book considers several different forms of physical restructuring such as divestitures as well as financial restructuring, which refers to alterations in the capital structure of the firm. The Art of Capital Restructuring not only explains the financial aspects of these transactions but also examines legal, regulatory, tax, ethical, social, and behavioral considerations. In addition to this timely information, coverage also includes discussion of basic concepts, motives, strategies, and techniques as well as their application to increasingly complex, real-world situations. Emphasizes best practices that lead to M&A success Contains important and relevant research studies based on recent developments in the field Comprised of contributed chapters from both experienced professionals and academics, offering a variety of perspectives and a rich interplay of ideas Skillfully blending theory with practice, this book will put you in a better position to make the right decisions with regard to capital restructuring in today's dynamic business world.
Author: Robert F. Bruner
Publisher: John Wiley & Sons
ISBN: 1118436393
Category : Business & Economics
Languages : en
Pages : 1056
Get Book Here
Book Description
A comprehensive guide to the world of mergers and acquisitions Why do so many M&A transactions fail? And what drives the success of those deals that are consummated? Robert Bruner explains that M&A can be understood as a response by managers to forces of turbulence in their environment. Despite the material failure rates of mergers and acquisitions, those pulling the trigger on key strategic decisions can make them work if they spend great care and rigor in the development of their M&A deals. By addressing the key factors of M&A success and failure, Applied Mergers and Acquisitions can help readers do this. Written by one of the foremost thinkers and educators in the field, this invaluable resource teaches readers the art and science of M&A valuation, deal negotiation, and bargaining, and provides a framework for considering tradeoffs in an effort to optimize the value of any M&A deal.
Author: Tessa Hebb
Publisher: Routledge
ISBN: 1136249737
Category : Business & Economics
Languages : en
Pages : 826
Get Book Here
Book Description
The UN-supported Principles for Responsible Investment initiative has led to around a third of the world’s financial assets being managed with a commitment to invest in a way that considers environmental, social or governance (ESG) criteria. The responsible investment trend has increased dramatically since the global financial crisis, yet understanding of this field remains at an early stage. This handbook provides an atlas of current practice in the field of responsible investment. With a large global team of expert contributors, the book explores the impact of responsible investment on key financial actors ranging from mainstream asset managers to religious organizations. Offering students and researchers a comprehensive introduction to current scholarship and international structures in the expanding discipline of responsible investment, this handbook is vital reading across the fields of finance, economics and accounting.
Author: William J. Gole
Publisher: John Wiley & Sons
ISBN: 0470180005
Category : Business & Economics
Languages : en
Pages : 320
Get Book Here
Book Description
Providing practical application of best practices employed in the divestiture process, Corporate Divestitures provides you with detailed guidance on how your corporation should handle a divestiture. It provides a structured approach that emphasizes disciplined execution and illustrative documents and application aids that can be adapted for use in real-world situations.
Author: Abdol Karim Afshar
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
Author: Mark L Feldman
Publisher: John Wiley & Sons
ISBN: 047148556X
Category : Business & Economics
Languages : en
Pages : 226
Get Book Here
Book Description
Five Frogs on a Log offers readers an entertaining and no--nonsense field guide to the mergers and acquisitions jungle, packed with insight and instruction for executing corporate change and capturing shareholder value.
Author: Tessa Hebb
Publisher: Springer Science & Business Media
ISBN: 9400723482
Category : Business & Economics
Languages : en
Pages : 271
Get Book Here
Book Description
In the face of the recent financial crisis there is increased focus on long-term investment strategies. This is particularly true for institutional investors who manage our retirement savings. Simultaneously there is increased demand that financial assets be invested with an understanding of long-term environmental and social sustainability. Responsible investing provides a long-term sustainable investment strategy that values environmental, social and governance (ESG) factors in investment decision-making. Responsible Investing has always had a broad mandate. Put simply, it is a long-term sustainable investment strategy that seeks to reduce risk in investment portfolios through managing ESG issues in today’s corporations. The Next Generation of Responsible Investment explores this topic in an edited volume intended for those with an interest in finance and business.
Author: Robert F. Bruner
Publisher: John Wiley & Sons
ISBN: 0470452595
Category : Business & Economics
Languages : en
Pages : 439
Get Book Here
Book Description
A detailed look at the worst M&A deals ever and the lessons learned from them It's common knowledge that about half of all merger and acquisition (M&A) transactions destroy value for the buyer's shareholders, and about three-quarters fall short of the expectations prevailing at the time the deal is announced. In Deals from Hell, Robert Bruner, one of the foremost thinkers and educators in this field, uncovers the real reasons for these mishaps by taking a closer look at twelve specific instances of M&A failure. Through these real-world examples, he shows readers what went wrong and why, and converts these examples into cautionary tales for executives who need to know how they can successfully navigate their own M&A deals. These page-turning business narratives in M&A failure provide much-needed guidance in this area of business. By addressing the key factors to M&A success and failure, this comprehensive guide illustrates the best ways to analyze, design, and implement M&A deals. Filled with in-depth insights, expert advice, and valuable lessons gleaned from other M&A transactions, Deals from Hell helps readers avoid the common pitfalls associated with this field and presents them with a clear framework for thinking about how to make any M&A transaction a success.
Author: Lynn Stout
Publisher: Berrett-Koehler Publishers
ISBN: 1605098167
Category : Business & Economics
Languages : en
Pages : 151
Get Book Here
Book Description
An in-depth look at the trouble with shareholder value thinking and at better options for models of corporate purpose. Executives, investors, and the business press routinely chant the mantra that corporations are required to “maximize shareholder value.” In this pathbreaking book, renowned corporate expert Lynn Stout debunks the myth that corporate law mandates shareholder primacy. Stout shows how shareholder value thinking endangers not only investors but the rest of us as well, leading managers to focus myopically on short-term earnings; discouraging investment and innovation; harming employees, customers, and communities; and causing companies to indulge in reckless, sociopathic, and irresponsible behaviors. And she looks at new models of corporate purpose that better serve the needs of investors, corporations, and society. “A must-read for managers, directors, and policymakers interested in getting America back in the business of creating real value for the long term.” —Constance E. Bagley, professor, Yale School of Management; president, Academy of Legal Studies in Business; and author of Managers and the Legal Environment and Winning Legally “A compelling call for radically changing the way business is done... The Shareholder Value Myth powerfully demonstrates both the dangers of the shareholder value rule and the falseness of its alleged legal necessity.” —Joel Bakan, professor, The University of British Columbia, and author of the book and film The Corporation “Lynn Stout has a keen mind, a sharp pen, and an unbending sense of fearlessness. Her book is a must-read for anyone interested in understanding the root causes of the current financial calamity.” —Jack Willoughby, senior editor, Barron’s “Lynn Stout offers a new vision of good corporate governance that serves investors, firms, and the American economy.” —Judy Samuelson, executive director, Business and Society Program, The Aspen Institute
